Navigating the Changes to IFRS 2025 Edition
Background
This Accounting Alert is issued to circulate Grant Thornton's Navigating the Changes to International Financial Reporting Standards 2025 Edition, a publication designed to give preparers and reviewers of IFRS financial statements a high-level awareness of recent changes to International Financial Reporting Standards. It covers both new Standards and Interpretations that have been issued and amendments made to existing ones.
Overview
The 2025 edition of the publication has been updated for changes to International Financial Reporting Standards (IFRS) that were published between January 1, 2024 and December 31, 2024. The publication covers annual financial statements for March 31, 2024, June 30, 2024, September 30, 2024. December 31, 2024 and March 31, 2025 year ends.
How to use the publication
Identifying the changes that will affect entities
The effective dates table lists all the changes covered in the publication and their effective dates, it has been color coded in the pdf to help entities planning for a specific financial reporting year end, and identifies:
- changes mandatorily effective for the first time;
- changes not yet effective; and,
- changes already in effect.
Where a change is not yet mandatorily effective for a particular year end, it may still be possible for an entity to adopt it early (depending on local legislation and the ability to be able to fully comply with all the requirements).
Where a change has been made but an entity is yet to apply it, certain disclosures are required to be made under PAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Disclosures required include the fact that the new or amended Standard or Interpretation has been issued but it has not yet been applied, and known or reasonably estimable information relevant to assessing its possible impact on the financial statements in the period of initial application.
Identifying the commercial significance of the changes in the publication
For each change covered in the publication, a section on the commercial implications of such change was included. These sections focus on two questions:
- how many entities will be affected?
- what will be the impact on affected entities?
A traffic light system indicates our assessment of the answers to these questions.
Please see attached article for the full report.
